ARPA, or Average Revenue Per Account, is a key metric for subscription-based businesses. It indicates how much revenue each customer generates, on average. To calculate ARPU, simply divide your total revenue by the number of customers you have.
For example, let’s say your subscription business has 100 customers and generates $10,000 in total revenue per month. This would give you an ARPA of $100 ($10,000/100).
If you want to grow your business, you need to focus on two things: acquiring new customers and increasing the amount of revenue each customer generates. Increasing your ARPU is a great way to achieve both of these goals.
There are a number of ways to increase your ARPA. You could add new features or products that customers can buy, upsell existing customers on higher-priced plans, or increase prices across the board. Another option is to offer discounts or promotions to encourage customers to buy more.
